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Education, Employment and Workplace Relations portfolio

Senator the Hon Ursula Stephens

Parliamentary Secretary for Social Inclusion and the Voluntary Sector

Parliamentary Secretary Assisting the Prime Minister for Social Inclusion

26 November, 2008

Speech

Discussion Paper Access Economics The Impact of the Global Economic Crisis on Social Services

Major Church Providers Summit Parliament House Canberra

Welcome everyone to Parliament House for this important summit.

I begin by acknowledging the Ngunnawal People, on whose land we are meeting, and who play an important part in the considerations and activities of this city as the National Capital. I pay my respects to their elders and their culture as the longest enduring living culture in the world. This is so significant to our nation and it is an honour to be associated with its significance.

Thank you for welcoming me to open this Summit on behalf of the Prime Minister.  As you know, the Prime Minister has been travelling extensively to meet with global leaders on the economic meltdown and has only just arrived back in Australia from the APEC meeting in Peru.  He is deeply sorry that he cannot be here this morning, but there are several matters that he needs to attend to immediately, especially as we have a major Council of Australian Government meeting on Saturday, in addition of course to Parliament.

I think we all know where the Prime Minister stands on the importance of the work of social services. After all, this is a Prime Minister who when he visits a nation like Peru goes out of his way to visit the Sisters of Mercy working in the crowded slums of Lima – I think that was his only event outside of the APEC meetings.
The Deputy Prime Minister has of course just introduced the Fair Work Bill into Parliament yesterday. That of course is a very important element of building a fairer Australia. It strengthens a safety net; it ensures that minimum wage increases will now take into account fairness, social inclusion and the needs of the low paid. It ensures that agreements cannot take basic employment rights like penalty rates off workers. It also provides a new stream of bargaining for low paid workers. 

I know the Deputy PM will attempt to drop in if time permits, and has asked to be briefed on the outcomes of the summit. Minister Macklin will be joining you this morning, as will Minister O’Connor will be joining you later this morning, and will be able to share with you the government’s considerations of the challenges in the employment services and education policy space. And Nancy Waites who is my new policy advisor will spend the day with you, to ensure we have a robust action plan at the end of the day.

Today is an important opportunity to focus our minds and start this most important conversation.

I have had several opportunities to meet with the four iconic and eminent Australian organisations here today, whose mission is to strive in their daily work for a fairer nation: I acknowledge specifically Kasy Chambers, Executive Director, Anglicare Australia; Frank Quinlan, Executive Director, Catholic Social Services Australia; David Eldridge, Territorial Social Programme Secretary, Australia Southern Territory, Salvation Army; and Lin Hatfield-Dodds, National Director, UnitingCare Australia, and all of you who have been working closely with the Rudd Government on our Social Inclusion agenda.

I would also like to welcome and acknowledge Ric Symes, Director, Access Economics, whose report is central to our discussions today.

It is, of course, critical that we engage on this topic: the Impact of the Global Economic Crisis on Social Services.

We don’t know the extent to which the economy will slow, or what the full ramifications will be for our nation and our communities.

However, I thank Anglicare, Catholic Social Services, Salvation Army and Uniting Care for commissioning Access Economics to undertake a preliminary analysis of the impacts of the rapid shift in economic circumstances that has occurred in recent months. The report certainly does provide some forecasts on key economic indicators which we need to be mindful of, and to plan for.

It certainly gives us a robust starting point as we begin to consider what 2009 might look like here in Australia – the challenges that are going to confront us and how best and how strategically we can position ourselves to respond.

The Report raises questions about market failures and the need to balance social, ethical and economic policies and practices – not easy questions, but ones we must be prepared to consider in light of current world events.

And, it highlights the precarious situation for many in our communities who live with an illusion of prosperity but who are struggling every day. These people are exemplified in many of the stories in the Anglicare Report “State of the Family 2008” and in the 10% of clients using Salvation Army emergency relief services who are purchasing their own home.

Let me reassure you that everyone in the Rudd Government understands that when we face hard times we need to be even more vigilant that people don’t fall between the cracks. We know that tougher economic times mean more and more strain on social service organisations. We know most of you have seen an increase in demand for your services already.

We were elected with a mandate for change, for action, for a nation building agenda after a decade of under-investment in social infrastructure, housing and transport.

Our commitment to social inclusion struck a chord with Australians who have become more uncomfortable about the growing gap between those who have, and those who are without in our society.

After so many years of economic growth and prosperity it makes little sense that growing numbers of our citizens are finding it hard to make ends meet, many find it impossible to balance the pressures on their family life; others have completely disengaged from our society.

Yet this is the situation – as we all know it from our work. And it is a situation that represents a lost opportunity, not only for individuals but for the nation.

The Access Economics report calls for coordinated and collaborative processes that involve all levels of government and the social services sector. It concludes that we require ‘innovative policy responses that address the core origins of mounting pressures’ in our community. 

This is the social inclusion agenda that we in government are working to build. It is a transformative agenda – one that is about breaking entrenched cycles of disadvantage and investing in policies and programs that make a significant difference in people’s lives.
 
We are all challenged to think very differently in this agenda – because it is about seeking out the causes of social exclusion rather than only dealing with the fallout of that exclusion.

That’s why we have focused so much of our early Social Inclusion work on prevention and early intervention in supporting families, those who are homeless, those with mental illness or living with disability.

We are balancing this approach with ensuring that we continue to provide support for those who are in crisis and those who are most vulnerable – the very clients that non-profit organisations work with and for, working in profound and inspirational ways.

We recognise that social exclusion is a deeply complex phenomenon. It is not simply addressed by isolated activities which reduce poverty or homelessness, nor is it just about increasing employment and education opportunities alone. 

It is about all of these things in unison, and linking overarching policy with on the-ground service delivery to break the cycle of disadvantage for those individuals and communities who have spent too long waiting for opportunities to make a contribution and participate in a meaningful way.

We know that effective services and programs 'wrap' services around the individual, particularly those individuals with complex needs. This demands a commitment to holistic service delivery – we say ‘putting people back at the centre of service delivery’, rather than maintaining institutional arrangements that are not delivery systemic change.

For this approach to succeed we need to ensure the links and partnerships between governments, service providers, non-profit and voluntary organisations are strong.

Professor Myles McGregor Lowndes from the Centre for Philanthropy and Non-Profit Studies at QUT recently reported a noticeable downturn in charitable giving since the financial crisis commenced. At the recent Philanthropy Australia Conference, Bruce Bonahady warned that trends in philanthropic giving may change dramatically in this new environment. Philanthropists will want to know that their giving is directed to generate meaningful impact.

At the other end of the equation - for families- mortgage stress is increasing, access to credit is tightening, and job vacancies are decreasing and unemployment is on the rise. These are indicators that point to real stresses and pressures on the services that your organisations provide. We are mindful of how these stresses can translate too to increased levels of depression and financial stress, to lack of opportunity as weekly budgets are stretched to the limit.

That’s why we want to hear from you today about what are the most effective policy responses and how best we can work together to respond to the pressures on social services. We welcome the chance to ensure that our social inclusion agenda will drive a national framework and new and appropriate public policy approach.

As this report points out, the sector is not only engaged in important delivering vital, high quality social services but it is key agent in building a genuinely civil society.

This is being demonstrated with today’s Summit, and I appreciate the genuine interest and commitment of you all to responding comprehensively and constructively to this very unique challenge. 

Our Social Inclusion agenda is also about finding the time, resources and thought leadership to focus on strengthening our civil society.

Security of employment and fairness in the workplace will be what makes a difference for many low income families in the coming months.

Every part of our policy response needs to be framed with this in mind.

I know that you are all very familiar with the details of the governments economic security strategy and the investment firstly of $10.4billion to Australian families, which will begin to flow into the economy in the week commencing 8th December. This will provide some much needed disposable income for families in the lead up to Christmas, to help with school holiday expenses and the ever stretched family budget.

Last week, the Australian Council of Local Government saw a historic commitment to a direct engagement with local government authorities and through them, local communities. The $300m local community infrastructure fund will help boost local spending in facilities and community amenities.

We have just passed the $662m National Rental Affordability Scheme, to begin addressing the housing shortages for low income families, and committed to building additional homeless support services.

Before coming to office, we also saw the need for a change in the relationship between the non-profit sector and the Government. I appreciate that you have been part of this conversation as we have tested the sector’s interest in the development of a national compact during the last few months.

We understand that respectful and effective relationships matter. They enable important discussions, such as the one we will have today, on how we can improve infrastructure and services.

I look forward to continue working with you all next year to progress our discussions even further, as we work towards improving opportunities for those who may be facing even more financial stress.

The government also has a broad agenda for third sector reform, working with the sector to strengthen sector organisations and their sustainability.  We have a work program to reduce red tape and increase transparency, allowing organisations to use their administrative resources better, to allow them more time for work on the ground and not in the back office, and we are working with the states and territories to harmonise regulation.

We know that the third sector must be supported well through good governance, and the Government is keenly awaiting next week’s report from the Senate Economics Committee’s Inquiry into regulation of the sector.

Conclusion

The commitment of the organisations here today, and organisations across the non-profit sector in influencing the national social policy agenda is critical, particularly in the global context we now find ourselves.

We need all voices at the table to develop robust policy thinking, strong advocacy for those who need it and new ways of thinking about how to make our Social Inclusion a reality for all Australians.

I congratulate the organisations involved in bringing forward this constructive report and for today’s Summit. I look forward to continued and robust discussions about this most important agenda. 

And again, on behalf of the Prime Minister, who would be here if he could be, I sincerely thank you all for your continued efforts in working for the common good. As a government we rely on your instincts, your responsiveness and your passion and we are committed to working with you on this important agenda.

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